CapitaMall Trust Posts Record Drop After CEO Quits (Update1)

Sept. 18 (Bloomberg) -- CapitaMall Trust, Singapore's biggest property trust, fell the most on record in Singapore trading after Pua Seck Guan resigned as chief executive officer of its management company.

The stock tumbled 8.2 percent to S$2.46 at the close in Singapore, its largest drop since the shares started trading on the Singapore exchange in 2002. The trust said yesterday Pua is resigning to ``pursue his personal interests'' and will be replaced on Nov. 1 by Lim Beng Chee, currently chief executive officer of CapitaRetail China Trust's manager.

CapitaMall shares have tumbled 29 percent this year, after more than tripling since its initial share offering. Pua's departure may hinder plans by the trust, which owns 13 retail malls in Singapore, to boost rental revenue and returns to investors by acquiring new shopping centers.

``This departure could trigger at least temporary loss of the management premium that CapitaMall has enjoyed,'' UBS AG analysts led by Alastair Gillespie said in a note today. They cut their rating on the stock to ``neutral'' from ``buy,'' pending ``greater clarity on CapitaMall's future strategy and whether more of the team departs.''

CapitaLand Ltd., parent of CapitaMall and Singapore's largest developer, fell 4.2 percent to S$3.79. CapitaRetail China, an owner of malls in China, declined 4.3 percent, to 67 Singapore cents.

To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net.

To contact the editor responsible for this story: Tony Jordan at tjordan3@bloomberg.net.